Insurance

What is a Deductible?

Deductible

[dih-duhk-tuh-buh l]

noun

1.

A Deductible is the amount of money a policyholder must pay out of pocket before any insurance payments are made. For example, if repairs to a personal vehicle cost $1,000, but the Deductible on that Policy is $500, the policyholder must pay $500 toward the repairs before the insurance company covers the other $500.

Have A Question About This Topic?

Thank you! Oops!

Related Content

A Cheat Sheet for Sending Your Kid to College

A Cheat Sheet for Sending Your Kid to College

Dropping off your child is loaded with emotions; here are a few tips for a smoother experience.

Consider Keeping Your Life Insurance When You Retire

Consider Keeping Your Life Insurance When You Retire

Reasons to retain your coverage into your retirement years.

Short Term vs. Long Term Disability Insurance

Short Term vs. Long Term Disability Insurance

From covering broken bones to chronic illness, here's what you need to know when it comes to your disability insurance options.